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IBDvalueinvestin (99.66)

Time to load up on BWLD which is down to recession type lows today.

Recs

2

April 28, 2010 – Comments (5) | RELATED TICKERS: BWLD

Its down -$9.28 LOL, yeah talk about an over-reaction on both sides, Longs selling on panic, and greedy bears looking for a free lunch. Both groups will fail. Seen it in the past, and BWLD has managed to rebound each time.

5 Comments – Post Your Own

#1) On April 28, 2010 at 11:13 AM, IBDvalueinvestin (99.66) wrote:

A Wall Street Firm still thinks a rebounding economy will contribute to a gradual return to positive comps for BWLD, but suggest BWLD will implement less aggressive menu price increases in 2010 and 2011

 

Reminds me of when CMG also crashed intraday then rebounded quickly.

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#2) On April 28, 2010 at 11:27 AM, clanza875 (32.41) wrote:

since when does a 30+ PE look like a recession low?

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#3) On April 28, 2010 at 11:58 AM, ikkyu2 (99.28) wrote:

Oh snap!

I'm with clanza875.  The company has managed to rebound every time, being extremely consistent in delivering earnings disappointments.  I especially liked the one about the spike in chicken wing costs in 2003.

 

They are out of excuses!  This company is a liquor retailer and makes all its money on alcohol markup.  It is extremely recession vulnerable because the core aspects of its business - watching TV and drinking booze - can be accomplished more cheaply by its patrons at their homes. 

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#4) On April 28, 2010 at 12:28 PM, IsleGirl2010 (98.00) wrote:

There is a market for their service and they've been popping up everywhere recently.  Maybe they ought to slow down a bit?  But we're not at the bottom of the recession now, we're climbing out and this is an over reaction.

However, a PE of 30 to me doesn't seem like a GREAT deal.  I would add on if the PE drops lower but I have better deals to stock up on right now. 

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#5) On April 28, 2010 at 10:13 PM, Patbubblebuster (< 20) wrote:

BWLD is suffering from the fact that there is and will be for awhile high unemployment in their core customer group.During the weekends and home football games it is packed to the rafters but other times it is barren,also all those tvs running all the time have to use alot more electricy than your average bar and electric rates are cheap now,if the economy picks up steam their energy costs will eat up any extra business in the off hours,Any new locations will just take away from stores open now so the dump today was long over due .

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